The Likely Breakthroughs As EU Top Brass Lands In India To Seal FTA
Leaders of the European Union (EU) arrived in New Delhi this weekend as part of a high-profile summit with Prime Minister Narendra Modi, with both sides looking to finalise long-pending agreements and deepen security cooperation. The meeting comes at a time when negotiations between India and the United States have not advanced as one would have anticipated.
The visit features European Commission President Ursula von der Leyen and European Council President Antonio Costa, marking a pivotal moment for the bloc’s relationship with one of the world’s fastest-growing economies.
Once the talks finalise, India and the EU are set to announce on Jan. 27 a free trade agreement, an official confirmed to news agency PTI. This will effectively mark the end of negotiations that started way back in 2007.
Free Trade Agreement
Ahead of their visit, von der Leyen had already generated a lot of hype surrounding the FTA with India, calling it the “mother of all deals”.
The deal is quite significant, considering that negotiations had initially paused for a while before resuming in 2022, putting an end to a nine-year hiatus. Both sides, therefore, will be aiming to resolve some of the long-standing friction points. While India is expected to seek greater market access for its services and manufacturing sectors, the EU may push for lower tariffs on automobiles, wines and spirits. The EU is home to some of the top carmakers in the world, most of which are not prominent in an Indian market dominated by the likes of Maruti Suzuki, Hyundai, Tata Motors and M&M.
Meanwhile, the EU market accounts for about 17% of India’s total exports, and the bloc’s exports to India constitute 9% of its total overseas shipments.
India’s bilateral trade in goods with the EU was $136.53 billion in 2024-25, making the EU India’s largest goods trading partner. The services trade in 2024 was $83.10 billion.
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Migration and Talent Mobility
PM Modi has long stressed the Migration and Mobility Partnership as one of the top priorities for the visit. The framework could streamline the legal migration of Indian professionals and students while putting forth a robust mechanism to combat illegal immigration.
As per a recent PIB release, a total of 931,607 Indian citizens resided in the EU at the end of 2024, the largest group (20.8%) being Blue Card holders (16,268 in 2024).
“Indian students have been among the top recipients of the Erasmus Mundus scholarships. In the last 20 years, over 6,000 scholarships have been awarded to Indian students for studying and working at leading institutions across Europe,” the release added.
Finding a common ground on migration and talent mobility, therefore, could be one of the key priorities for the two parties.
Expanding Defence and Technology Ties
Security and defence may also dominate the agenda, as India looks to utilise the opportunity to diversify its military hardware away from Russian influence. The EU, in fact, has approved moving ahead with the signing of a new Security and Defence Partnership in New Delhi.
The agreement will expand cooperation on maritime security, counterterrorism and cyber‑defence, and will be followed by talks on a security of information pact.
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